Not upheld: Fraud reimbursement (APP scams) complaint against Raylo Group Limited

Decision detail

Summary

Mrs B complained that Raylo Group Limited was holding her liable for a 12-month hire agreement for a games console she claimed she did not purchase and did not authorize. Raylo investigated and concluded the agreement was legitimate, as it required verification through Mrs B's banking app, email, and a PIN sent to her mobile number. As a goodwill gesture, Raylo agreed to allow Mrs B to return the console and unwind the agreement, providing a QR code with instructions to return it via a Customer Service Point. However, Mrs B took the parcel to a local parcel locker instead of following the instructions and did not attach the postage label, resulting in the console not being returned to Raylo. The ombudsman found no sufficient evidence that the agreement was taken out without Mrs B's authority and determined that Mrs B failed to follow the returns process, making it reasonable for Raylo to continue holding her liable for the payments.

The Ombudsman's reasoning

The ombudsman found that Raylo took proportionate verification steps requiring access to Mrs B's banking app, email, and mobile number, making it reasonable to conclude the application was made by or with Mrs B's authority. Mrs B could not explain how someone else could have completed these steps without her knowledge. Although Raylo agreed as a goodwill gesture to allow return of the console, Mrs B failed to follow the clear instructions provided with the QR code, instead taking the parcel to a locker without attaching the postage label. Since the console was not returned to Raylo and Mrs B did not follow the returns process, it was reasonable for Raylo to continue holding her liable for the hire payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website